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512

Grand Pharmaceutical Group SEHK:512 Stock Report

Last Price

HK$4.42

Market Cap

HK$15.5b

7D

6.0%

1Y

-38.3%

Updated

23 Jun, 2022

Data

Company Financials +
512 fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance2/6
Financial Health6/6
Dividends2/6

512 Stock Overview

Grand Pharmaceutical Group Limited, an investment holding company, engages in the research and development, manufacture, and sale of pharmaceutical preparations and medical devices, biotechnology and healthcare products, and pharmaceutical raw materials.

Grand Pharmaceutical Group Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for Grand Pharmaceutical Group
Historical stock prices
Current Share PriceHK$4.42
52 Week HighHK$7.40
52 Week LowHK$3.99
Beta1.0
1 Month Change3.76%
3 Month Change-22.18%
1 Year Change-38.27%
3 Year Change-0.67%
5 Year Change115.61%
Change since IPO-83.00%

Recent News & Updates

May 29
Grand Pharmaceutical Group's (HKG:512) Dividend Will Be HK$0.11

Grand Pharmaceutical Group's (HKG:512) Dividend Will Be HK$0.11

The board of Grand Pharmaceutical Group Limited ( HKG:512 ) has announced that it will pay a dividend on the 21st of...

Shareholder Returns

512HK PharmaceuticalsHK Market
7D6.0%5.1%-1.2%
1Y-38.3%-45.3%-23.8%

Return vs Industry: 512 exceeded the Hong Kong Pharmaceuticals industry which returned -45.3% over the past year.

Return vs Market: 512 underperformed the Hong Kong Market which returned -23.8% over the past year.

Price Volatility

Is 512's price volatile compared to industry and market?
512 volatility
512 Average Weekly Movement5.0%
Pharmaceuticals Industry Average Movement6.2%
Market Average Movement7.0%
10% most volatile stocks in HK Market13.6%
10% least volatile stocks in HK Market3.3%

Stable Share Price: 512 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 512's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
199510,029Chao Zhouhttps://www.grandpharm.com

Grand Pharmaceutical Group Limited, an investment holding company, engages in the research and development, manufacture, and sale of pharmaceutical preparations and medical devices, biotechnology and healthcare products, and pharmaceutical raw materials. The company offers pharmaceutical preparations, including cerebro-cardiovascular emergency medicines; respiratory, ophthalmic, anti-infection, and ENT medicines; oncology medicines; and rare disease medicines. It also provides medical devices, such as vascular interventional medical devices comprising paclitaxel releasing coronary balloon dilatation catheters and paclitaxel releasing hemodialysis shunt balloon dilatation catheters; and ophthalmology related devices.

Grand Pharmaceutical Group Fundamentals Summary

How do Grand Pharmaceutical Group's earnings and revenue compare to its market cap?
512 fundamental statistics
Market CapHK$15.48b
Earnings (TTM)HK$2.40b
Revenue (TTM)HK$8.60b

6.5x

P/E Ratio

1.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
512 income statement (TTM)
RevenueHK$8.60b
Cost of RevenueHK$3.35b
Gross ProfitHK$5.25b
Other ExpensesHK$2.84b
EarningsHK$2.40b

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.68
Gross Margin61.03%
Net Profit Margin27.94%
Debt/Equity Ratio27.1%

How did 512 perform over the long term?

See historical performance and comparison

Dividends

2.5%

Current Dividend Yield

16%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 512 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 512?

Other financial metrics that can be useful for relative valuation.

512 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.8x
Enterprise Value/EBITDA6.3x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does 512's PE Ratio compare to its peers?

512 PE Ratio vs Peers
The above table shows the PE ratio for 512 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average11.8x

Price-To-Earnings vs Peers: 512 is good value based on its Price-To-Earnings Ratio (6.5x) compared to the peer average (11.8x).


Price to Earnings Ratio vs Industry

How does 512's PE Ratio compare vs other companies in the Hong Kong Pharmaceuticals Industry?

Price-To-Earnings vs Industry: 512 is good value based on its Price-To-Earnings Ratio (6.5x) compared to the Hong Kong Pharmaceuticals industry average (9.4x)


Price to Earnings Ratio vs Fair Ratio

What is 512's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

512 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6.5x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 512's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of 512 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 512 (HK$4.42) is trading below our estimate of fair value (HK$9.08)

Significantly Below Fair Value: 512 is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 512's PEG Ratio to determine if it is good value.


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Future Growth

How is Grand Pharmaceutical Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


18.7%

Forecasted annual revenue growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if 512's forecast earnings growth is above the savings rate (1.5%).

Earnings vs Market: Insufficient data to determine if 512's earnings are forecast to grow faster than the Hong Kong market

High Growth Earnings: Insufficient data to determine if 512's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 512's revenue (18.7% per year) is forecast to grow faster than the Hong Kong market (10.1% per year).

High Growth Revenue: 512's revenue (18.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 512's Return on Equity is forecast to be low in 3 years time (15%).


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Past Performance

How has Grand Pharmaceutical Group performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


40.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 512 has a large one-off gain of HK$516.8M impacting its December 31 2021 financial results.

Growing Profit Margin: 512's current net profit margins (27.9%) are lower than last year (28.2%).


Past Earnings Growth Analysis

Earnings Trend: 512's earnings have grown significantly by 40.1% per year over the past 5 years.

Accelerating Growth: 512's earnings growth over the past year (34%) is below its 5-year average (40.1% per year).

Earnings vs Industry: 512 earnings growth over the past year (34%) exceeded the Pharmaceuticals industry 16.1%.


Return on Equity

High ROE: 512's Return on Equity (17.9%) is considered low.


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Financial Health

How is Grand Pharmaceutical Group's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 512's short term assets (HK$6.8B) exceed its short term liabilities (HK$5.6B).

Long Term Liabilities: 512's short term assets (HK$6.8B) exceed its long term liabilities (HK$2.0B).


Debt to Equity History and Analysis

Debt Level: 512's net debt to equity ratio (1%) is considered satisfactory.

Reducing Debt: 512's debt to equity ratio has reduced from 141% to 27.1% over the past 5 years.

Debt Coverage: 512's debt is well covered by operating cash flow (55.1%).

Interest Coverage: 512's interest payments on its debt are well covered by EBIT (121.1x coverage).


Balance Sheet


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Dividend

What is Grand Pharmaceutical Group current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


2.49%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 512's dividend (2.49%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.78%).

High Dividend: 512's dividend (2.49%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.91%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 512 has been paying a dividend for less than 10 years.

Growing Dividend: 512's dividend payments have increased, but the company has only paid a dividend for 3 years.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (16.2%), 512's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (26.4%), 512's dividend payments are well covered by cash flows.


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Management

How experienced are the management team and are they aligned to shareholders interests?

1.0yrs

Average management tenure


CEO

Chao Zhou (31 yo)

1

Tenure

Mr. Chao Zhou serves as Executive Deputy Officer of Grand Pharmaceutical Group Limited (formerly known as China Grand Pharmaceutical and Healthcare Holdings Limited) since April 2019 and serves as its Chie...


Leadership Team

Experienced Management: 512's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

Experienced Board: 512's board of directors are considered experienced (8.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 512 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Grand Pharmaceutical Group Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Grand Pharmaceutical Group Limited
  • Ticker: 512
  • Exchange: SEHK
  • Founded: 1995
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Implied Market Cap: HK$15.484b
  • Shares outstanding: 3.53b
  • Website: https://www.grandpharm.com

Number of Employees


Location

  • Grand Pharmaceutical Group Limited
  • The Center
  • 33rd Floor
  • Central
  • Hong Kong

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/23 00:00
End of Day Share Price2022/06/23 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.